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Should I save aggressively during my late 20s?

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Old 09-08-2018, 10:29 AM   #1
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Should I save aggressively during my late 20s?

Hello,

I am 25 foereigner living with my wife in SG. While my wife cooks most of the time, I love frequent eating out and travel. Currently, my savings is slightly below 1/3rd of my income in that lifestyle. I don't have any loans outstanding for me and we plan to have kids around 29. My wife still don't work, but planning to start soon.
Now my question is, I can cut around $S500 per month if I am a bit careful with my money regarding my lifestyle. Is it worth to live frugal and save money for the future?

Last edited by samfly; 09-08-2018 at 05:49 PM..
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Old 09-08-2018, 10:39 AM   #2
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Will be good if u do so now coz with kids drain a lot of money (for us) but again depending on how u use the money.
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Old 09-08-2018, 11:08 AM   #3
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For perspective, for what it's worth, comparably situated Singaporeans and Permanent Residents are saving as much as 37% of their gross incomes from work, because that's the maximum savings rate for their CPF contributions (including employer contributions). So, in that sense, many people are doing a bit better than you are currently in terms of savings rate.

However, if your wife is going to start working, and thus household savings will rise more or less in line with her income (after tax of course), then your household savings rate is going to be higher than most households in Singapore.
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Old 09-08-2018, 11:12 AM   #4
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When I was at your age, I saved more than 80% of my pay and then invested those.

Hello,

I am 25 foereigner living with my wife in SG. While my wife cooks most of the time, I love frequent eating out and travel. Currently, my savings is slightly below 1/3rd of my income in that lifestyle. I don't have any loans outstanding for me and we plan to have kids around 29. My wife still don't work, but planning to start soon.
Now my question is, I can cut around $S500 per month if I am a bit careful with my money regarding my lifestyle. Is it would to live frugal and save money for the future?
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Old 09-08-2018, 11:24 AM   #5
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When I was at your age, I saved more than 80% of my pay and then invested those.
What did you invest in and how did the investment go?
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Old 09-08-2018, 01:05 PM   #6
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also, what was your salary roughly then? do you have any tips on living on just 20% salary

When I was at your age, I saved more than 80% of my pay and then invested those.
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Old 09-08-2018, 03:08 PM   #7
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The first and most important investment is buying a flat so I and my wife could stop wasting money on rentals. Then I moved on to unit trusts and stocks. Of course at first not exactly profitable but slowly improved over the years.

What did you invest in and how did the investment go?
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Old 09-08-2018, 03:18 PM   #8
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Back then my wife and I had combined income around 4K+, so 20% of that was not too bad. My tip: marry early, buy your first flat early and have kids early, then you can concentrate on accumulating wealth. Another tip: learn to cook.

also, what was your salary roughly then? do you have any tips on living on just 20% salary

Last edited by Solano; 09-08-2018 at 03:22 PM..
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Old 09-08-2018, 03:53 PM   #9
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https://networthify.com/calculator/e...thdrawalRate=4

useful calculator for those in accumulation phase Ö you can quickly check where you are. pretty motivational when you see your target getting closer & closer each year

keep free hobbies, enjoy simple meals, occasionally indulgence everytime you met a milestone

stay away from negative people
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Old 09-08-2018, 05:14 PM   #10
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Back then my wife and I had combined income around 4K+, so 20% of that was not too bad. My tip: marry early, buy your first flat early and have kids early, then you can concentrate on accumulating wealth. Another tip: learn to cook.
What year was that? 2 people living on $800 a month is incredible
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Old 09-08-2018, 05:57 PM   #11
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Thatís history. After next election, we should be looking forward to 9% GST and higher.
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Old 09-08-2018, 09:02 PM   #12
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haha 400 per person is alright if rental isn't an issue. i'm in the process of tracking and tightening my wallet... realised (at least now rather than later) the importance of saving for an early and comfortable retirement.

thanks for the advice! but marrying early i'm not too sure..............

btw all you pros out there, how do you come up with a target figure to hit? is it based off your estimated needs (target figure derived from housing loans etc), or more of a personal target thing (figure derived from a % of your annual salary - like if i earn 50k pa I'd want to save say 60% of that so my 10 year goal might be 300k assuming things are stagnant).. or something else

Back then my wife and I had combined income around 4K+, so 20% of that was not too bad. My tip: marry early, buy your first flat early and have kids early, then you can concentrate on accumulating wealth. Another tip: learn to cook.
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Old 09-08-2018, 09:23 PM   #13
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That was like 15 years ago. It's probably still doable now if no kids.

What year was that? 2 people living on $800 a month is incredible
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Old 09-08-2018, 09:27 PM   #14
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Foreigner? Please spend more money to support the economy.
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Old 09-08-2018, 09:45 PM   #15
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Well, we bought our first flat shortly after marry so could quickly get our CPF to handle the mortgage fully. So really not too bad.

I didn't have a target to have how much by when. I still don't have a target now that I retired to handle my investment full time. If you always spend minimum and save/invest maximum then really there's no need for a target.

haha 400 per person is alright if rental isn't an issue. i'm in the process of tracking and tightening my wallet... realised (at least now rather than later) the importance of saving for an early and comfortable retirement.

thanks for the advice! but marrying early i'm not too sure..............

btw all you pros out there, how do you come up with a target figure to hit? is it based off your estimated needs (target figure derived from housing loans etc), or more of a personal target thing (figure derived from a % of your annual salary - like if i earn 50k pa I'd want to save say 60% of that so my 10 year goal might be 300k assuming things are stagnant).. or something else
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